<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(MARK ONE)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2000
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _________ to ___________.
Commission File Number 0-21863
EPIX MEDICAL, INC.
(Exact name of Registrant as Specified in its Charter)
<TABLE>
<S> <C>
DELAWARE 04-3030815
- ---------------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
71 ROGERS STREET
CAMBRIDGE, MASSACHUSETTS 02142
- ---------------------------------------- ------------------------------------
(Address of principal executive offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code: (617) 250-6000
Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act:
COMMON STOCK, $.01 PAR VALUE PER SHARE
--------------------------------------
(Title of Class)
Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
As of May 3, 2000, 11,740,244 shares of the registrant's Common Stock,
$.01 par value per share, were issued and outstanding.
<PAGE>
EPIX MEDICAL, INC.
INDEX
<TABLE>
<CAPTION>
PAGE
NUMBER
<S> <C>
PART I FINANCIAL INFORMATION
Item 1. Condensed Financial Statements (Unaudited)
Balance Sheets--March 31, 2000 and December 31, 1999 ................... 3
Statements of Operations--Three Months Ended March 31, 2000 and 1999 ... 4
Statements of Cash Flows--Three Months Ended March 31, 2000 and 1999 ... 5
Notes to Condensed Financial Statements ................................ 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations ........................................... 8
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K ....................................... 10
Signatures ........................................................................ 11
</TABLE>
2
<PAGE>
EPIX MEDICAL, INC.
BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
------------- -------------
<S> <C> <C>
Assets:
Current assets:
Cash and cash equivalents .................................................. $ 1,564,490 $ 430,124
Available-for-sale marketable securities ................................... 8,922,469 13,709,980
Prepaid expenses and other current assets .................................. 1,557,323 1,214,929
------------ ------------
Total current assets .................................................. 12,044,282 15,355,033
Property and equipment, net .................................................... 1,825,091 2,058,282
Notes receivable from officer .................................................. 361,227 356,159
Other assets ................................................................... 125,314 116,109
------------ ------------
Total assets .......................................................... $ 14,355,914 $ 17,885,583
============ ============
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable and accrued expenses ...................................... $ 3,869,161 $ 3,753,836
Contract advances .......................................................... 308,955 308,955
Current portion of capital lease obligations ............................... 379,911 379,911
Current portion of note payable ............................................ 411,112 397,864
------------ ------------
Total current liabilities ............................................. 4,969,139 4,840,566
Capital lease obligations, less current portion ................................ 219,998 323,748
Note payable, less current portion ............................................. 265,901 373,783
Loan payable to strategic partner .............................................. 2,797,646 1,583,557
Common stock, $.01 par value, 15,000,000 shares authorized; 11,731,413 and
11,680,315 shares issued and outstanding at
March 31, 2000 and December 31, 1999, respectively ......................... 117,317 116,803
Additional paid-in capital ..................................................... 56,890,632 56,520,680
Loan to stock option holders ................................................... (260,816) (387,430)
Accumulated deficit ............................................................ (50,559,062) (45,398,477)
Other comprehensive loss ....................................................... (84,841) (87,647)
------------ ------------
Total stockholders' equity ..................................................... 6,103,230 10,763,929
------------ ------------
Total liabilities and stockholders' equity ..................................... $ 14,355,914 $ 17,885,583
============ ============
</TABLE>
See accompanying notes.
3
<PAGE>
EPIX MEDICAL, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2000 MARCH 31, 1999
----------------------- ------------------
<S> <C> <C>
Revenues ...................................... $ 859,400 $ 287,267
Operating expenses:
Research and development .................. 5,050,906 3,286,491
General and administrative ................ 1,042,083 1,041,955
------------ ------------
Total operating expenses ............. 6,092,989 4,328,446
------------ ------------
Operating loss ................................ (5,233,589) (4,041,179)
Interest income ............................... 168,964 370,893
Interest expense .............................. (95,960) (54,393)
------------ ------------
Net loss ...................................... $ (5,160,585) $ (3,724,679)
============ ============
Weighted average shares:
Basic and diluted ........................ 11,720,515 11,464,242
Loss per common share:
Basic and diluted ........................ $ (0.44) $ (0.32)
</TABLE>
See accompanying notes.
4
<PAGE>
EPIX MEDICAL, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED THREE MONTHS ENDED
MARCH 31, 2000 MARCH 31, 1999
--------------------- ----------------------
<S> <C> <C>
Operating activities:
Net loss .................................................................... $ (5,160,585) $ (3,724,679)
Adjustments to reconcile net loss to cash used by operating
activities:
Depreciation and amortization ...................................... 247,605 250,774
Loss on sale of fixed assets ....................................... -- 18,500
Interest income related to stock option loans ...................... (3,953) (1,659)
Change in operating assets and liabilities:
Prepaid expenses, other current assets, notes
receivable from officer and other assets ......................... (356,667) (204,873)
Accounts payable and accrued expenses .............................. 115,325 165,112
------------ ------------
Net cash used by operating activities ................................... (5,158,275) (3,496,825)
Investing activities:
Purchase of fixed assets .................................................... (14,412) (21,224)
Proceeds from sale of fixed assets .......................................... -- 19,500
Purchases of marketable securities .......................................... (5,160,344) (34,167,988)
Proceeds from sales or redemptions of marketable securities ................. 9,950,660 40,242,912
------------ ------------
Net cash provided by investing activities ............................... 4,775,904 6,073,200
------------ ------------
Financing activities:
Proceeds from collection of stock option loan and
related interest .......................................................... 130,566 --
Proceeds from issuance of loan payable to strategic partner ................. 1,214,089 --
Repayment of capital lease obligations ...................................... (103,750) (102,674)
Repayment of note payable ................................................... (94,634) (83,014)
Proceeds from issuance of stock options and warrants ........................ 370,466 4,887
------------ ------------
Net cash provided (used) by financing activities ............................ 1,516,737 (180,801)
------------ ------------
Increase in cash and cash equivalents ....................................... 1,134,366 2,395,574
Cash and cash equivalents at beginning of period ............................ 430,124 369,454
------------ ------------
Cash and cash equivalents at end of period .................................. $ 1,564,490 $ 2,765,028
============ ============
Supplemental disclosure of noncash investing and financing activities:
Fixed assets acquired through lease financing ............................... -- $ 154,760
============ ============
Supplemental cash flow information:
Cash paid for interest ...................................................... $ 95,960 $ 54,393
============ ============
</TABLE>
See accompanying notes.
5
<PAGE>
EPIX MEDICAL, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 2000
(UNAUDITED)
1. BASIS OF PRESENTATION
The unaudited condensed financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and the instructions to Form 10-Q and the rules of the Securities
and Exchange Commission (the "Commission"). Accordingly, they do not include all
of the information and footnotes required to be presented for complete financial
statements. The accompanying condensed financial statements reflect all
adjustments (consisting only of normal recurring adjustments) which are, in the
opinion of management, necessary for a fair presentation of the results for the
interim periods presented. The results of the interim period ended March 31,
2000 are not necessarily indicative of the results expected for the full fiscal
year.
The condensed financial statements and related disclosures have been
prepared with the assumption that users of the interim financial statements have
read or have access to the audited financial statements for the preceding fiscal
year. Accordingly, these condensed financial statements should be read in
conjunction with the audited financial statements and the related notes thereto
included in the Company's Annual Report on Form 10-K for the year ended December
31, 1999.
2. COMPREHENSIVE INCOME
Financial Standards No. 130, "Reporting Comprehensive Income" ("SFAS 130")
requires unrealized gains or losses on the Company's available-for-sale
securities to be included in other comprehensive income. Total comprehensive
income (loss) for the quarter ended March 31, 2000 amounted to $2,806 compared
to ($37,049) in the same period in 1999.
3. EARNINGS (LOSS) PER SHARE
The Company computes earnings (loss) per share in accordance with the provisions
of SFAS No. 128, "Earnings per Share." Basic net earnings (loss) per share is
based upon the weighted-average number of common shares outstanding and excludes
the effect of dilutive potential common stock issuable upon exercise of stock
options. Diluted net earnings (loss) per share includes the effect of dilutive
potential common stock issuable upon exercise of stock options using the
treasury stock method. In computing diluted earnings (loss) per share, only
potential common shares that are dilutive, those that reduce earnings per share,
are included. The exercise of options is not assumed if the result is
antidilutive, such as when a loss from continuing operations is reported. The
following table sets forth the computation of basic and diluted loss per share:
<TABLE>
<CAPTION>
THREE MONTHS ENDED
----------------------------------
MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C>
Numerator:
Net loss ....................................... $ (5,160,585) $ (3,724,679)
------------ ------------
Numerator for basic and diluted loss per share .... $ (5,160,585) $ (3,724,679)
Denominator:
Denominator for basic and diluted loss per
share - weighted average shares .............. 11,720,515 11,464,242
============ ============
Basic and diluted loss per share .................. $ (0.44) $ (0.32)
</TABLE>
4. SUBSEQUENT EVENTS
On May 8, 2000, we granted to Schering AG ("Schering") (Berlin, Germany) a
worldwide, royalty-bearing license to our patents covering Schering's
development project. Eovist injection (gadolinium EOB-DTPA), an MRI contrast
agent for imaging the liver, currently in Phase III clinical trials. Among
the licensed patents are European Patent 222,886 and US patents 4,899,755 and
4,880,008.
On May 9, 2000, the Opposition Division of the European Patent Office
maintained our European Patent 222,886 in a slightly amended form. The patent
is owned by the Massachusetts General Hospital and is exclusively licensed to
us. Schering licensed rights to this patent, as described above, and withdrew
prior to the hearing. Other parties in the opposition can elect to appeal the
decision.
Also on May 8, 2000, Schering granted us a non-exclusive, royalty-bearing
license to its Japanese patents 1,932,626, 1,968,413 and its Japanese
Application WO 99/16474. We have agreed to withdraw our invalidation claim of
Schering's Japanese patent 1,932,626 in the Japanese Patent Office pursuant
to this license agreement.
6
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
OVERVIEW
Since commencing operations in 1992, we have been engaged principally in the
research and development of our product candidates as well as seeking various
regulatory clearances and patent protection. We have had no revenues from
product sales and have incurred losses since inception through March 31, 2000
aggregating approximately $50.6 million. We have received revenues in connection
with various licensing and collaboration agreements. In August 1996, we entered
into a strategic alliance with Mallinckrodt, Inc. ("Mallinckrodt") pursuant to
which we received $6.0 million in up-front license fees. The agreement provided
for an additional $2.0 million milestone payment, which was received in July
1997. In March 1996, we entered into a strategic alliance with Daiichi
Radioisotope Laboratories, Ltd. ("Daiichi"). Under this agreement, we received
$3.0 million in license fees and $5.0 million from the sale of shares of our
preferred stock, and were entitled to receive up to $3.3 million in future
payments based upon our achievement of certain product development milestones.
We received $900,000 of such milestone payments in July 1997.
We expect continued operating losses for the next several years as we incur
expenses to support research, development and efforts to obtain regulatory
approvals.
Our initial product candidate, AngioMARK (MS-325), is currently our only
product candidate undergoing human clinical trials. We filed an
investigational new drug ("IND") application for AngioMARK in July 1996. We
initiated a Phase I clinical trial in 1996 and a Phase I dose escalation
study in 1997, both of which have been completed. We completed a Phase II
clinical trial in June 1998 to test the safety and preliminary efficacy of
AngioMARK-enhanced magnetic resonance angiography ("MRA") for the evaluation
of peripheral vascular disease ("PVD") and we are currently conducting a
Phase II feasibility trial to test the safety and feasibility of
AngioMARK-enhanced MRA for the evaluation of coronary artery disease ("CAD").
In addition, in January 1998, we initiated a Phase II clinical trial to test
the safety and feasibility of AngioMARK for detecting breast cancer.
Enrollment in this trial was completed in March 2000. In June 1999, we
initiated a Phase III clinical trial to determine the efficacy of
AngioMARK-enhanced MRA for the detection of aortoiliac occlusive disease
("AIOD").
We anticipate fluctuation in our quarterly results of operations due to several
factors, including: the timing of fees and milestone payments received from
strategic partners; the formation of new strategic alliances by us; the timing
of expenditures in connection with research and development activities; the
timing of product introductions and associated launch, marketing and sales
activities; and the timing and extent of product acceptance for different
indications and geographical areas of the world.
RESULTS OF OPERATIONS
COMPARISON OF THREE MONTHS ENDED MARCH 31, 2000 AND 1999
REVENUES. First quarter revenues were approximately $859,000 and $287,000 in
2000 and 1999, respectively, and in both periods included revenues derived from
product development contracts. The increase in revenues during the first quarter
of 2000 was due to the timing of cost-sharing reimbursements, based on
development costs incurred by our partners and us.
RESEARCH AND DEVELOPMENT EXPENSES. Research and development expenses for the
three months ended March 31, 2000 were $5.1 million as compared to $3.3 million
for the three months ended March 31, 1999. The increased research and
development costs were primarily due to clinical trial, personnel and other
costs associated with advancing AngioMARK through a Phase III clinical trial
program that began in June 1999. Higher costs were also incurred related to our
other research and development activities.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses for the
three months ended March 31, 2000 of $1.0 million were consistent with the first
quarter of 1999 and reflected lower legal costs associated with ongoing patent
activities offset by higher costs incurred on corporate communication and
marketing activities.
INTEREST INCOME AND EXPENSE. Other income, consisting mainly of interest income,
decreased approximately $202,000 in 2000 as compared to 1999 mainly due to lower
average levels of invested cash during the first quarter of 2000. The increase
in interest expense of approximately $42,000 in 2000 was the result of higher
interest expense associated with the loan payable to our strategic partner,
Mallinckrodt. At March 31, 2000, cash, cash equivalents and marketable
securities totaled $10.5 million and the balance of the loan payable to our
strategic partner was $2.8 million.
7
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES
We have financed our operations from inception through March 31, 2000, primarily
with $14.3 million in net proceeds from our initial public offering completed in
February 1997, $22.9 million from a follow-on public offering of common stock in
November 1997, $18.4 million from private sales of equity securities, $18.0
million received from third parties in connection with collaboration and license
arrangements, $2.6 million of equipment lease financing and $5.2 million in
interest income. From inception through March 31, 2000 we have incurred $76.7
million of costs attributable to operating activities, including $57.3 million
related to the research and development of technology and new product
candidates, including AngioMARK.
Our principal source of liquidity consists of cash, cash equivalents and
marketable securities, which totaled $10.5 million at March 31, 2000, as
compared to $14.1 million at December 31, 1999.
In October 1999, we entered into a Non-Negotiable Promissory Note and Security
Agreement (the "Loan") with Mallinckrodt pursuant to which we are eligible to
borrow up to $9.5 million from Mallinckrodt, on a quarterly basis, to cover our
share of AngioMARK development costs. The Loan bears interest, adjustable on a
quarterly basis, at the Prime Rate published in the Wall Street Journal. The
Loan is repayable in full on the earliest to occur of (i) October 1, 2002, (ii)
thirty days after the date of the First Commercial Sale of Licensed Product in
the Territory (as such terms are defined in our Strategic Collaboration
Agreement with Mallinckrodt dated August 30, 1996, as amended (the "Strategic
Collaboration Agreement")) and (iii) thirty days after the first date upon which
we could reasonably repay all outstanding principal and interest on the Loan
without creating any reasonably foreseeable risk that we would be otherwise
entitled to receive a loan from Mallinckrodt under the existing terms of the
Strategic Collaboration Agreement within six months of the date of any such
repayment. The Loan is secured by a first priority security interest in all of
our intellectual property. Although the possibility exists that the Loan will
become repayable within the next twelve months pursuant to repayment provision
(iii) above, the conditions required to be met by such provision require our
speculation concerning both the probability and success of certain future
financial transactions. Due to our current uncertainty that such future
transactions will occur or will occur such as to cause repayment provision (iii)
above to apply, we have classified the Loan as a long-term obligation. We
received the second installment of $1,214,089 pursuant to the Loan during the
quarter ended March 31, 2000. The Loan balance at March 31, 2000 is $2,797,646.
We are eligible to receive additional payments of $2.4 million from Daiichi upon
the attainment of certain future AngioMARK development milestones. Daiichi is
responsible for funding development of AngioMARK in Japan. Under our agreement
with Mallinckrodt, we and Mallinckrodt generally will share equally in future
development costs of AngioMARK up to a specified maximum amount.
During the quarter ended March 31, 2000, we used approximately $5.2 million of
cash for operating activities. We expect that our cash needs for operations will
increase significantly in future periods due to planned clinical trials and
other expenses associated with the development of AngioMARK and new research and
development programs.
We estimate that existing cash, cash equivalents and marketable securities, and
the Loan from Mallinckrodt will be sufficient to fund our operations through the
first quarter of 2001. We believe that we will need to raise additional funds
for research, development and other expenses, through equity or debt financing,
strategic alliances or otherwise, prior to commercialization of any of our
product candidates. There can be no assurance that additional financing will be
available on terms acceptable to us, or at all. Our future liquidity and capital
requirements will depend on numerous factors, including the following: the
progress and scope of clinical trials; the timing and costs of filing future
regulatory submissions; the timing and costs required to receive both United
States and foreign governmental approvals; the cost of filing, prosecuting,
defending and enforcing patent claims and other intellectual property rights;
the extent to which our products gain market acceptance; the timing and costs of
product introductions; the extent of our ongoing research and development
programs; the costs of training physicians to become proficient with the use of
our products; and, if necessary, once regulatory approvals are received, the
costs of developing marketing and distribution capabilities.
8
<PAGE>
Because of anticipated spending to support development of AngioMARK and new
research programs, we do not expect positive cash flow from operating activities
for any future quarterly or annual period prior to commercialization of
AngioMARK. We anticipate continued investments in fixed assets, including
equipment and facilities expansion to support new and continuing research and
development programs. We have in place a lease agreement that will enable us to
utilize our current principal scientific facilities through December 31, 2002,
and we have an option to extend the lease for an additional three or five years.
We also have a lease for nearby office space, which expires in December 2002.
We have incurred tax losses to date and therefore have not paid significant
federal or state income taxes since inception. At December 31, 1999, we had loss
carryforwards of approximately $42.7 million available to offset future taxable
income. These amounts expire at various times through 2014. As a result of
ownership changes resulting from sales of equity securities, our ability to use
the loss carryforwards is subject to limitations as defined in Sections 382 and
383 of the Internal Revenue Code of 1986, as amended (the "Code"). We currently
estimate that the annual limitation on our use of net operating losses through
May 31, 1996 will be approximately $900,000. Pursuant to Sections 382 and 383 of
the Code, the change in ownership resulting from public equity offerings in 1997
and any other future ownership changes may further limit utilization of losses
and credits in any one year. We also are eligible for research and development
tax credits that can be carried forward to offset federal taxable income. The
annual limitation and the timing of attaining profitability may result in the
expiration of net operating loss and tax credit carryforwards before
utilization.
We do not believe that inflation has had a material impact on our operations.
YEAR 2000
In prior years, we discussed the nature and progress of our plans to become Year
2000 ready. In late 1999, we completed our remediation and testing of systems.
As a result of those planning and implementation efforts, we experienced no
significant disruptions in mission critical information technology and
non-information technology systems and believe those systems successfully
responded to the Year 2000 date change. We expensed approximately $25,000 during
1999 in connection with remediating our systems. We are not aware of any
material problems resulting from Year 2000 issues, either with our products or
services of third parties. We will continue to monitor our mission critical
computer applications and those of our suppliers and vendors throughout the Year
2000 to ensure that any latent Year 2000 matters that arise are addressed
promptly.
FORWARD-LOOKING STATEMENTS
The discussion included in this section as well as elsewhere in the
Quarterly Report on Form 10-Q contains forward-looking statements based on the
current expectations of our management. Such statements are subject to risks and
uncertainties which could cause actual results to differ materially from those
projected. See "Important Factors Regarding Forward-Looking Statements" attached
as Exhibit 99.1 and incorporated herein by reference to our Annual Report on
Form 10-K for the year ended December 31, 1999 as previously filed with the
Commission. Readers are cautioned not to place undue reliance on the
forward-looking statements which speak only as of the date thereof. We undertake
no obligation to release publicly the result of any revisions to these
forward-looking statements which may be made to reflect events or circumstances
occurring after the date hereof or to reflect the occurrence of unanticipated
events.
9
<PAGE>
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
<TABLE>
<S> <C>
27.1 Financial Data Schedule for the interim year-to date period
ended March 31, 2000 (for electronic filing only).
99.1 Important Factors Regarding Forward-Looking Statements filed
as Exhibit 99.1 to the Company's Annual Report on Form 10-K
for the year ended December 31, 1999 and incorporated herein
by reference.
</TABLE>
(B) REPORTS ON FORM 8-K
No reports on Form 8-K were filed by the Company during the quarter
ended March 31, 2000.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
EPIX Medical, Inc.
Date: May 15, 2000 By: /s/ PAMELA E. CAREY
---------------------------------
Pamela E. Carey
Director of Finance and Treasurer
(Principal Financial Officer and
Accounting Officer)
11
<PAGE>
EXHIBIT INDEX
<TABLE>
<S> <C>
NUMBER DESCRIPTION
27.1 Financial data schedule for the interim year-to-date period ended March
31, 2000 (for electronic filing only).
99.1 Important Factors Regarding Forward-Looking Statements filed as Exhibit
99.1 to the Company's Annual Report on Form 10-K for the year ended
December 31, 1999 and incorporated herein by reference.
</TABLE>
12
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET OF EPIX MEDICAL, INC. AS OF MARCH 31, 2000 AND FOR THE
THREE MONTH PERIOD ENDED MARCH 31, 2000 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 1,564,490
<SECURITIES> 8,922,469
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 12,044,282
<PP&E> 4,483,183
<DEPRECIATION> (2,658,092)
<TOTAL-ASSETS> 14,355,914
<CURRENT-LIABILITIES> 4,969,139
<BONDS> 3,063,547
0
0
<COMMON> 117,317
<OTHER-SE> 5,985,913
<TOTAL-LIABILITY-AND-EQUITY> 14,355,914
<SALES> 0
<TOTAL-REVENUES> 859,400
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 6,092,989
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 95,960
<INCOME-PRETAX> (5,160,585)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,160,585)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,160,585)
<EPS-BASIC> (0.44)
<EPS-DILUTED> (0.44)
</TABLE>
